Modelling quality‐cost dynamics

Abstract

Existing quality‐cost models have been criticized for their imprecision and inadequate theoretical justification. Attempts to remedy these deficiencies by using systems dynamics to build a generic model relating quality conformance levels to the quality‐cost categories of prevention, appraisal and failure (PAF). Outlines in depth the assumptions underlying the model’s structure and links model parameters to published empirical data. Explores the model’s sensitivities to changes in factors including different initial values of conformance quality. Determines the potential for improvements in quarterly and cumulative quality costs by changing the PAF cost levels.